Which of the Following Is True Regarding Accounting and Financial

question 72

Multiple Choice

Which of the following is true regarding accounting and financial reporting for private colleges and universities?

• A) Expenses may be unrestricted or temporarily restricted depending on donor intent.
• B) A Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets may be presented instead of a Statement of Activities.
• C) The Statement of Cash Flows must use the direct method.
• D) None of the above is true.

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Definitions:

Additional Paid-in Capital

The amount of money investors have paid for shares above their nominal value during the issuance of stock.

Voting Shares

Shares of a company that grant the shareholder the right to vote on company matters, such as electing the board of directors.

Fair Value

A projected cost at which property or obligation can be swapped among aware, agreeable individuals in a transaction without any undue pressure.

Stock Issuance Costs

Expenses associated with the issuance of new shares of stock, such as legal, accounting, and underwriting fees.